Paragon Shipping Inc. (NASDAQ:PRGN)

CAPS Rating: 4 out of 5

The Company provides drybulk shipping services worldwide.

Recs

5
Player Avatar imacg5 (< 20) Submitted: 9/15/2009 6:31:44 PM : Underperform Start Price: $44.30 PRGN Score: -19.65

What is this? Pumpers Paradise?
Do you really think trailing earnings are of any use? Or the Book values that are based on what the ships cost? As opposed to the real value now. Or are some of you trying to sucker in newbies.
If you want to know where this company is going, they provide all the information in their earnings report. And SEC filings.
You may want to adjust that PE to account for the added 20 million shares. And also subtract $8 million from each quarterly revenue forecast. It might be good news that they locked in 100% of charter rates for 2009, but they locked in lower rates.
And the $85 million they raised in the ATM, don't count on them using that for acquisitions, they are still in breach of loan covenants. They have waivers that allow them to be in breach until Jan. '10. They have to have permission from creditors before buying anything, or paying dividends. And those waivers cost them an extra 2% in interest.
They may have to pay down debt in order to maintain a 125% Collateral Maintenance Ratio. (This is why real time ship values are important.)
Ship values are not rising.
You can check those at www.cotzias.gr
Yes the economy is picking up, however, not nearly at the rate that the fleet will grow over the next two years. Rates will remain depressed.

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